Saudi update causes price of oil to sink

The price of oil sank after Saudi Arabia said it had made more progress over oil production, while the European markets remained subdued.

The FTSE 100 nudged lower as it closed 18 points down at 7,408.21 at the end of trading yesterday.

Saudi Arabia said the speed of oil production is back to the same rate as before Saudi Aramco oil facilities were struck in a drone attack on September 14, reducing fears over supply levels and pressing down on prices.

The price of a barrel of Brent crude oil slumped by 2.63% to $60.26.

The European markets welcomed a calmer day for international trade tensions and also rose on the back of currency weakness.

The German Dax increased by 0.38% while the French Cac moved 0.66% higher.

The Dow Jones opened in the black, pushing higher after promising trade comments by economist Mr Navarro, as traders became more optimistic over relations with China.

The value of the pound edged higher against the dollar and euro as it was encouraged by a higher revision of GDP for the first quarter of 2019.

It also benefited from weakness in the euro, as traders became more concerned over inflation in Germany.

The pound was 0.1% up versus the US dollar at 1.230 and down 0.44% against the euro at 1.127.

In company news, Premier Inn owner Whitbread was one of the FTSE 100’s biggest fallers, as investors were spooked by Barclays decision to downgrade the hospitality business.

Shares in Whitbread closed 173p lower to 4,294p.